NZ stocks: Quiet week expected

By IRENE CHAPPLE

The sharemarket should snooze through this week, with scheduled announcements unlikely to have much impact.

The market is speculating on the new Policy Targets Agreement, which may be announced this week.

However, increased flexibility for the Reserve Bank, in line with Australia, has already been tipped. Finance Minister Michael Cullen has already hinted at changes to the Reserve Bank's inflation target.

In the past he has said he was not calling for a widening of the target band, which was widened from 0-2 per cent to 0-3 per cent in 1996. But it is likely the target may have added flexibility.

The Reserve Bank of Australia is directed to keep inflation within a 2 to 3 per cent band, on average.

Tomorrow Restaurant Brands' second-quarter sales figures are expected to continue the company's upward climb. The latest quarterly sales for the company that owns KFC, Pizza Hut and Starbucks Coffee in New Zealand were $64.1 million, up 9.3 per cent on last year.

Auckland International Airport holds its special shareholder meeting on capital return, at the Ellerslie Convention Centre on Friday, to approve the cancellations of seven shares in every 25, with a payment of $1.80 for each share.